We were approached by an experienced but part-time landlord who owns eight rental properties.
He was looking to remortgage a new build property to raise capital in order to expand his portfolio.
The property is a 3-bed detached house in the North of England which he had had built on land he owned. The client wanted to remortgage the property personally having taken tax advice from his accountant.
As not all buy to let lenders will accept new builds as security the funding options were slightly limited.
We took the case to a mainstream lender which we know accepts new build houses as standard and agreed the following terms.
Property value: £235,000
Loan amount: £176,250
Rate: 3.75% 5 years fixed (4.6% APR)
Term: 25 years interest only
Lender arrangement fee: £1,999
Mortgage payment: £1,088 pcm
Rental income: £1,200 pcm
Gross yield: 6.13% pa
Consultant: Andy McOwat, 01625 416396